Developer Peter Curistan said he had been vindicated over an IRA money laun dering accusation levelled by Mr Robinson almost two years ago.

High Court judge Mr Justice Gillen yesterday described the allegation as “baseless” while dismissing a judicial review case taken by Mr Curistan's company Sheridan.

The challenge concerned a decision by the Department for Social Development (DSD) to axe the firm as preferred developer for the Queen's Quay site in Belfast's Laganside district.

Sheridan's legal team argued that the Government's handling of this process had been “poisoned” by unfounded allegations of a link to “dirty IRA money”.

This claim was made under parliamentary privilege by the DUP deputy leader in February 2006, and also in newspaper articles.

DSD's barrister maintained that the ditching of Sheridan from Queen's Quay scheme was the result of to a “due diligence” accountancy study which pinpointed serious corporate governance shortcomings in the company.

The department's legal team accepted that the money laundering claims were unfounded.

In his judgment, Mr Gillen said Sheridan had not established bad faith on the part of DSD and he had found “no unfairness, procedural or otherwise”.

The judge added: “I consider that Mr Curistan, on behalf of the applicant, has permitted his understandable indignation at the baseless allegations of money laundering to combine with his profound disappointment at losing the position of preferred developer to so colour his attitude to the whole process of due diligence that he has lost sight of the de ficiencies in corporate governance identified in the applicant.

“It is these identified deficiencies which are the real reasons why the decisions of the respondents have been made in my view.”

In a statement, Mr Curistan voiced disappointment, but added: “Neverthe less, I am completely satisfied with the comprehensive vindication of my own personal reputation, and that of my company, by the trial judge in relation to the malicious and unfounded allegations made by Peter Robinson in the privileged confines of the House of Commons some time ago.

“I am disappointed that in the light of what was said in court on behalf of the

Government by their senior counsel and by the judge ... that the minister has had neither the courage nor the good grace to admit that he was wrong and to withdraw his hurtful and deeply wounding claims about me and my company.”

The businessman added: “My family and I have had to live with this stigma for almost two years now, and I am therefore relieved that the categorical and uncontradicted evidence given during the judicial review hearing on behalf of the Government has now gone some way towards alleviating the distress suffered by myself and my family.

“I believe that it would be inappropriate for me to make any further comment, bearing in mind that we are carefully considering whether or not to appeal today’s decision.”

A DSD spokesman said: “This decision means that the Department can now move forward developing this important Laganside site and we will make an an nouncement on the next steps in the near future."